The U.S.-EU Trade Impact became clear on Monday after President Donald Trump delayed the planned 50% tariff on European Union goods. Trump extended the tariff deadline from June 1 to July 9, calming market worries about escalating trade tensions. This development boosted U.S. futures, while Asian shares showed mixed reactions.
Following Trump’s Sunday call with European Commission President Ursula von der Leyen, who expressed eagerness to begin serious negotiations, markets responded positively. Trump’s decision offered more time for talks, easing fears of an immediate tariff clash.
The S&P 500 futures surged 1%, and Dow Jones futures rose 0.8%. Meanwhile, in Asia, Tokyo’s Nikkei climbed 0.7%, and Seoul’s Kospi added 1.2%. Conversely, Hong Kong’s Hang Seng dropped 1%, and Shanghai’s Composite Index fell 0.3%. Australia’s S&P/ASX 200 remained almost unchanged. This mix highlights regional uncertainty amid ongoing trade discussions.
Last week, Trump had threatened a straight 50% tariff on EU imports, citing stalled negotiations. His latest move suggests a strategic pause to encourage more productive talks.
Market watchers closely monitor the U.S.-EU Trade Impact on corporate earnings and supply chains. Apple shares fell 3% after Trump warned the company about tariffs if iPhone production stays overseas. Trump later clarified that tariffs could affect all smartphones made abroad, including Samsung.
The trade tensions have created uncertainty, forcing companies like Deckers Outdoor and Ross Stores to withdraw financial forecasts for the year. Deckers’ stock plunged 19.9% despite reporting strong quarterly earnings, while Ross fell nearly 10%.
On the brighter side, Intuit’s stock rose 8.1% after posting better-than-expected profits. The nuclear sector also saw gains after Trump signed executive orders to accelerate licensing, with Oklo jumping 23%.
The U.S.-EU Trade Impact continues to drive volatility in markets. Traders weigh the risks of tariffs and the potential for a global economic slowdown. Meanwhile, crude oil prices edged higher, with U.S. benchmark crude gaining 9 cents to $61.62 per barrel.
Currency markets reflected caution as the dollar eased against the yen and euro. Investors remain watchful as the July 9 tariff deadline approaches.
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